Jurisprudentiol – Monday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Customs

Export of meat - requirement of certificate that products have been obtained from APEDA registered abattoir - Challenge to DGFT Notification No. 82/2011 dismissed: HC

THE petitioner challenges the condition imposed by DGFT that “Export of meat and meat products will be allowed subject to the exporter furnishing a declaration, attached with copies of valid APEDA Plant Registration Certificate(s) to the customs at the time of exports that the above items have been obtained/sourced from an APEDA registered integrated abattoir or from APEDA registered meat processing plant which sources raw material exclusively from APEDA registered integrated abattoir/abattoir”

Income Tax

Whether when certain flats are leased out for certain period but tenant vacates some flats before contracted period, addition is warranted for additional rental receivable - YES, rules ITAT

ASSESSEE company had earned rental income from its various properties. It had leased out 19 flats to Patni Computer Systems Ltd. In all these 19 flats, the last Leave and License agreement was effective upto 31st December 2005. In respect of four flats, Patni Computer Systems Ltd. intimated that they had discontinued the use of the property w.e.f. 1.7.2005. Accordingly, they did not pay rent from that date. The AO did not accept this submission of the assessee and computed the additional rent receivable for the period July 2005 to December 2005.

Service Tax

Functions performed by National Highway Authority of India or its contractor cannot be considered as sovereign functions: CESTAT

WHILE the tax imposition is made for public purpose without reference to any service rendered by the State or any specific benefit conferred upon the tax payer, a fee is a payment levied by the State in respect of the services performed by it for the benefit of the individual. Money raised by a fee is set apart and appropriated specific for the purpose of the service for which it has been imposed and is not merged in the general revenues of the state. Further the NHAI Act itself provides under section 18 that the fee collected by the authority shall be credited to its own fund and can be utilized for meeting its expenses in the discharge of its functions on salary and allowances and other remunerations provided to its members, officers or other employees etc. In view, of the distinctive nature of the functions and the amounts collected, prima facie the functions performed by NHAI or its contractor cannot be considered as sovereign functions nor the fees collected acquires the nature of tax or duty so as to be outside the scope of service tax.

See our columns Monday for the judgements